Bidding war for 92 West Chicago

COLDWATER — City of Coldwater officials have found the old Standard Oil gas station at 92 W. Chicago is more valuable than was originally thought.

James Gordon, CPA and current tenant Quality Prosthetics and Orthotic Care each are bidding on the property — with the latest bid Wednesday at $47,000, up from an original $40,000 by Gordon.

An appraisal valued the property at $40,000.

Coldwater Mayor Tom Kramer said he and City Manager Jeff Budd consulted with the city attorney and decided before the city accepts any offer it wants to get both parties together to bid "back and forth until one calls uncle."

Budd said, "It is not an easy process under the city charter."

The charter requires a back and forth public auction.

Any offer on city property accepted by the city council must the placed on the table for 30 days so others can bid.

If a higher bid is accepted, it must then sit on the table for 30 days, making for a lengthy process.

Budd told the Downtown Development Authority Wednesday the other alternative is sealed bids, which then must be tabled for 30 days.

Kramer told the DDA the city has a fiduciary responsibility to taxpayers, but if there is a bid to put in retail business — which would bring a higher volume of traffic downtown — that could be a priority.

Gordon runs an accounting office, while Quality operates three days a week.

DDA member Jay Johnson said he favors retail.

The building was obtained from Max Larsen. Vacant for years, the DDA leased the building six years ago to Quality, netting about $7,200 a year for the DDA budget. The city had to spend $20,000 in the last three years to repair the roof, HVAC and doors.

Because it is a historic building, the city council will consider deed restrictions on any sale. It reads in part, "the exterior façade and overall exterior physical appearance, including color, shall not be significantly altered."

The city would allow expansion of the building to the north and west "in an architecturally compatible manner" governed by "the Historic District Commission or the Planning Commission of the City of Coldwater."